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LM Funding reports steady Bitcoin mining in November

Published 12/10/2024, 08:36 AM
LMFA
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TAMPA - LM Funding America, Inc. (NASDAQ:LMFA), a company engaged in cryptocurrency mining and specialty finance with a market capitalization of $9.58 million, released a preliminary update on its Bitcoin mining operations for November 2024. The unaudited report indicates a slight increase in Bitcoin mined during the month, maintaining a consistent operational pace with previous months. InvestingPro data shows the company has achieved notable revenue growth of 27.8% over the last twelve months.

According to the update, the company mined 7.4 Bitcoins in November, slightly up from 7.3 in October and 6.6 in September 2024. Despite selling 5.7 Bitcoins, the company's holdings were approximately 142.2 Bitcoins at the end of November, valued at an estimated $14.2 million based on the Bitcoin price on December 6, 2024. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with a notably low Price/Book ratio of 0.32. Get access to 10+ additional ProTips and comprehensive valuation metrics with InvestingPro.

LM Funding has been focusing on operational efficiency and strategic asset management, aiming to balance productivity in mining with the retention of Bitcoin assets. This approach is part of their strategy for sustained growth and competitive positioning in the volatile cryptocurrency market.

The company reported that it has approximately 5,880 active Bitcoin miners, which provide a combined hashing power of around 639 petahash per second. The number of miners deployed and the potential hash rate remained unchanged from the end of October to the end of November, with approximately 3,700 miners in operation and another 2,180 in transit.

Founded in 2008 and based in Tampa, Florida, LM Funding America operates through two segments: Specialty Finance and Mining Operations. While the company maintains a strong current ratio of 4.38 and operates with moderate debt levels, InvestingPro analysis reveals challenges in cash flow generation. The company's commitment to the cryptocurrency mining sector is part of its broader strategy to diversify and strengthen its financial operations. Discover the complete financial health analysis and access the detailed Pro Research Report, available for LMFA and 1,400+ other US stocks on InvestingPro.

The information provided in this update is based on a press release statement from LM Funding America, Inc. It is important to note that forward-looking statements are subject to various risks and uncertainties, and the company's future results could differ materially from those projected. Investors are advised to consider these factors and consult additional financial disclosures made by the company through the SEC.

In other recent news, LM Funding America reported its Q3 2024 results, highlighting a revenue of approximately $1.3 million, with $1.1 million generated from mining 18.5 Bitcoins. Despite a year-over-year decrease in revenue, the company is shifting towards vertical integration in its mining operations and maintains a positive outlook on Bitcoin's future price trajectory. The firm also managed to reduce its operating expenses to $5.6 million from $6.6 million, although it experienced an increase in core EBITDA loss to $1.6 million from $0.6 million in Q3 2023.

LM Funding America currently operates around 3,700 Bitcoin mining machines and plans to expand its capacity through reinvestment and advanced technologies. The company confirmed a sustainable power rate of $0.04 per kilowatt in Oklahoma and is optimistic about future expansions. Despite not meeting its revenue targets, primarily due to the impact of the Bitcoin halving and the timing of miner deployment, the company is focused on improving operational efficiency and exploring opportunities in the Florida real estate market. Analysts have inquired about the company's capacity, power rates, expansion plans, and approach to mergers and acquisitions. These are the latest developments for LM Funding America.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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